Collage Project
APJEM
Arth Prabhand: A Journal of Economics and Management
Vol.1 Issue 8, November 2012, ISSN 2278‐0629
INVESTOR PROTECTION MEASURES BY SEBI
DR. KVSN JAWAHAR BABU*; S. DAMODAHR NAIDU**
*Professor,
KMM Colleges,
Ramireddipalli,
Tirupati.
**Professor,
KMM Institute of Postgraduate Studies,
Tirupati.
Pinnacle Research Journals 72 http://www.pinnaclejournals.com
ABSTRACT
Investor protection is one of the most important elements of a thriving securities market or other financial investment institution. Investor protection focuses on making sure that investors are fully informed about their purchases, transactions, affairs of the company that they have invested in and the like. SEBI had issued guidelines for the protection of the investors through the
Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000.
The measures in practice gave mixed results. On the positive front, many banks sponsored mutual fund had launched assured return schemes and lured the investor 's huge contribution.
When they failed to deliver the promise, SEBI gave directive to sponsor bank to honour the commitment made by the mutual funds, which cost the sponsor banks over Rs 2000 crore. SEBI has introduced a supplementary process of applying in public issues, viz. ASBA process. The application money shall remain blocked in the bank account till finalisation of the basis of allotment in the issue or till withdrawal / failure of the issue or till withdrawal / rejection of the application, an initiate that safeguards the interests of both issuing company and the investor.
Investor education campaigns have been yielding positive results to some extent, still lot more needs to be done. Indian investors have been steadily fleeing the market, despite the apparent spread of ‘equity cult’, which calls for immediate attention of the apex
Arth Prabhand: A Journal of Economics and Management
Vol.1 Issue 8, November 2012, ISSN 2278‐0629
INVESTOR PROTECTION MEASURES BY SEBI
DR. KVSN JAWAHAR BABU*; S. DAMODAHR NAIDU**
*Professor,
KMM Colleges,
Ramireddipalli,
Tirupati.
**Professor,
KMM Institute of Postgraduate Studies,
Tirupati.
Pinnacle Research Journals 72 http://www.pinnaclejournals.com
ABSTRACT
Investor protection is one of the most important elements of a thriving securities market or other financial investment institution. Investor protection focuses on making sure that investors are fully informed about their purchases, transactions, affairs of the company that they have invested in and the like. SEBI had issued guidelines for the protection of the investors through the
Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000.
The measures in practice gave mixed results. On the positive front, many banks sponsored mutual fund had launched assured return schemes and lured the investor 's huge contribution.
When they failed to deliver the promise, SEBI gave directive to sponsor bank to honour the commitment made by the mutual funds, which cost the sponsor banks over Rs 2000 crore. SEBI has introduced a supplementary process of applying in public issues, viz. ASBA process. The application money shall remain blocked in the bank account till finalisation of the basis of allotment in the issue or till withdrawal / failure of the issue or till withdrawal / rejection of the application, an initiate that safeguards the interests of both issuing company and the investor.
Investor education campaigns have been yielding positive results to some extent, still lot more needs to be done. Indian investors have been steadily fleeing the market, despite the apparent spread of ‘equity cult’, which calls for immediate attention of the apex
References: of India) For Suggesting Amendments To Securities And Exchange Board Of India Act, 1992